Please indicate the number of departures including redundancies for permanent employees over the year.

  • Radia Guira

Departures: number of employees who have left the company, in particular for the following reasons:
– Resignation
– Individual dismissal
– Breach of contract for economic reasons
– Conventional breakage
– End of contract, ex. : contract of term or period of trial, retirement / pre-retirement, death, etc.
– Suspension of contract

This question aims to measure the level of employee turnover within your company, specifically regarding those who have left the organization, including cases of redundancy, over the course of the last year. It helps to determine the stability of your workforce and can highlight major changes in staffing or significant instances of job cuts.

The question refers to ‘permanent employees’, ensuring that the data is not skewed by short-term contracts, temporary staff or seasonal workers. It gives a more precise indication of the company’s long-term approach to human resources and its impacts.

In giving your response, you need simply to indicate the total number of permanent staff that have left the organisation over the last 12 months. Include all reasons of departure, but particularly redundancies, as these may indicate the financial health of the company or shift in the business strategy.

Please remember to count only departures and redundancies and not internal changes (such as team or role changes) that have occurred within your pool of permanent staff.

Example of response: Over the past year, we have had a total of 50 departures from our permanent staff, which includes 10 redundancies.

Understanding Employee Turnover and Redundancy

When assessing a company’s ESG (Environmental, Social, and Governance) performance, one important aspect to consider is employee turnover, which includes voluntary departures and redundancies. Understanding the reasons behind employee departures can offer valuable insights into a company’s social practices and its overall stability. Permanent employees who leave an organization may do so for various reasons, such as finding a new job, retirement, going back to school, or even due to redundancy.

Redundancies, in particular, can occur due to several factors such as economic downturns, restructuring, or a strategic shift in business focus. These departures are not always negative; they can sometimes be part of a healthy restructuring process. However, high levels of redundancies may indicate underlying issues within the company, which could be a red flag for investors and stakeholders concerned with a company’s governance practices and long-term viability.

For detailed guidance on understanding the end of employment and redundancy processes in France, click here.

Collecting and Reporting Departure Data Accurately

To calculate your company’s ESG score accurately, it is crucial to track and report the number of employee departures, including redundancies, over the year. This not only helps in maintaining transparency but also in pinpointing areas that might require improvement. A systematic approach to data collection should include:

  • Establishing clear definitions for types of departures, ensuring that all relevant staff are aware of these definitions.
  • Maintaining up-to-date and accurate records of all employee departures.
  • Conducting exit interviews to understand the reasons behind voluntary departures.
  • Regularly analyzing the data to identify trends or patterns that could signify deeper issues within the organization.

Accurate reporting of these figures is essential for stakeholders who use this information to evaluate the company’s social impact and governance. It is advisable to refer to legal resources to ensure that you are compliant with all regulations concerning reporting and documenting redundancies and other types of departures. For further information on voluntary and forced redundancies, and settlement agreements as per Dutch law, visit this link.

Best Practices for Managing Redundancies and Departures

Managing redundancies and departures is a sensitive area that requires a strategic approach to minimize negative impacts on both the organization and its employees. Implementing best practices is essential for maintaining a positive work environment and upholding the company’s reputation. Some of these best practices include:

  • Providing clear communication and support to employees throughout the redundancy process.
  • Offering retraining or career transition services to affected employees.
  • Implementing fair and transparent selection criteria for redundancies to avoid any discriminatory practices.
  • Ensuring compliance with all legal requirements for terminations and redundancies. For a comprehensive guide on the rights and obligations in France concerning termination of employment, click here.

By following these practices, a company can demonstrate strong governance and a commitment to its social responsibilities, positively influencing its ESG score.

In conclusion, accurately tracking and managing employee departures, including redundancies, is a significant factor in ESG reporting. It reflects a company’s commitment to transparency, fair labor practices, and sound governance. By maintaining clear records, adhering to best practices, and complying with legal requirements, businesses can not only improve their ESG scores but also foster a workplace environment that is both productive and respectful to its employees.

Please remember that the objective of ESG reporting is not just to satisfy a scoring system but also to encourage companies to adopt practices that lead to sustainable and ethical business operations. By focusing on the well-being of employees and rigorously documenting departures and redundancies, companies can improve their social performance, contribute to a better society, and ultimately achieve long-term success.